Key points:
- Price has test and retest the lower parallel line (Price typically runs out of energy at the reaction line)
- Price is in a range and needs to decide direction before we can make our trade decision.
- Price is above the 200 moving average for over 60 days.
- Overall on balance of probability, price should go higher from this point but we cannot place any trade as it is in a range and has a 50/50 chance of going either direction.
When we follow our plan we eliminate impulse trading so make sure you design a method to have a peace of mind.
Good luck.
- Price has test and retest the lower parallel line (Price typically runs out of energy at the reaction line)
- Price is in a range and needs to decide direction before we can make our trade decision.
- Price is above the 200 moving average for over 60 days.
- Overall on balance of probability, price should go higher from this point but we cannot place any trade as it is in a range and has a 50/50 chance of going either direction.
When we follow our plan we eliminate impulse trading so make sure you design a method to have a peace of mind.
Good luck.